A Generalization of the Second Theorem of Welfare Economics for Nonconvex Economies.
The second welfare theorem is generalized in two ways: (1) for an arbitrary economy, the pap er characterizes the set of allocations that can be supported by some price regime and some distribution of wealth and (2) a condition, we aker than convexity, is shown to suffice for supportability of each P areto optimal allocation and a general second welfare theorem cannot be proved if this condition is relaxed in any way. The paper also unc overs the conditions under which two economies with the same demand a nd supply functions will have identical Pareto optimal allocations. Copyright 1988 by Economics Department of the University of Pennsylvania and the Osaka University Institute of Social and Economic Research Association.
Year of publication: |
1988
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Authors: | Campbell, Donald E |
Published in: |
International Economic Review. - Department of Economics. - Vol. 29.1988, 2, p. 201-15
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Publisher: |
Department of Economics |
Saved in:
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